2016 08 09 - S&O Agenda - Item 8, Att 2 - AEC Noosa Convention & Performing Arts Centre Pre-feasibility Review

PRE-FEASIBILITY OF CONVENTION AND PERFORMING ARTS CENTRES


For the Gladstone Entertainment Convention Centre – which includes convention and performance arts
components of a comparable size to that proposed by CCIQ Noosa – the net annual operating loss is currently
estimated at $2.344 million before depreciation and $3.269 million after depreciation.


4.5         FUNDING
The following comments are made regarding the external capital funding of selected venues based on information
sourced online and Ranbury Management Group (2011):

     Gold Coast Convention and Exhibition Centre (2004):

      o   Owned and funded by Queensland Government.

      o   Operated by Tabcorp (Jupiter Limited).

     Townsville Entertainment and Exhibition Centre (1993):

      o   Funded by Queensland Government ($7 million), Townsville City Council ($14 million) and Breakwater
          Island Trust (land valued at $6.5 million), with a subsequent $23 million upgrade equally funded by the
          Queensland Government ($11.5 million) and Townsville City Council ($11.5 million) in 1997, and recent
          refurbishment works at least part funded by the Federal Government ($5 million contribution) and
          Queensland Government ($1.8 million).

      o   Owned by Queensland Government, Townsville City Council and Breakwater Island Trust as a Joint
          Venture.

      o   Operated by Tabcorp (with Convention Bureau funding for marketing provided by Queensland
          Government).

     Mackay Convention and Exhibition Centre (2009):

      o   Owned and operated by Mackay Regional Council (with Convention Bureau funding for marketing provided
          by Queensland Government).

      o   Funded by Queensland Government ($29 million) and local land owners.

     Gladstone Entertainment Convention Centre (2013):

      o   Owned and operated by Gladstone Regional Council.

      o   Funded via a rates equivalent payment from Gladstone Ports Corporation (a Government-owned
          corporation).

     Sunshine Coast Entertainment, Convention and Exhibition Centre (proposed by 2020):

      o   Provided/subsidised as part of a holistic area-wide residential and commercial development.


4.6         KEY OUTCOMES
4.6.1       Convention Centre Market

     There are a number of different privately owned and operated conference and accommodation venues in
      Noosa catering for the 150-300 seating capacity conferencing market.

     In the broader Sunshine Coast market, there are a variety of similar venues with a holistic service offering that
      compete for the same market, in addition to a number of other venue only providers such as sporting clubs,
      RSL and halls.

     In the mid to high level MICE market, Novotel Twin Waters (30 minutes from Noosa) offers 1,000 seating
      capacity and the Lake Kawana Community Centre (40 minutes from Noosa) offers 740 seating capacity.

     There is considerable uncertainty surrounding the future of the Palmer Coolum Resort and future use of the
      site, although it also features considerable capacity to meet the needs of the mid to high level MICE market
      should its supply come back online at some point.



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